Monday, June 04, 2018 - 4:45 PM

City Rates A+ from Standard and Poors

On May 23, 2018, S&P Global Ratings affirmed its 'A+' long-term issuer credit and senior unsecured debt ratings on the City of St. John's. Consistent with previous ratings, this demonstrates the City’s commitment to prudent fiscal management.

According to Standard and Poor’s, despite “subdued economic growth and likely falling assessment values” the stable rating “reflects our expectation that, in the next two years, St. John's will maintain its high GDP per capita and strong operating balances, which should support its capital plans and keep debt in line with forecast.”

“This positive report affirms our sound financial management practices,” said Councillor Dave Lane, Finance Lead for St. John's City Council. “Retaining our good standing is important because the S&P rating impacts the City’s ability to borrow funds required for important capital and infrastructure investment.”

According to the global financial research and ratings agency, “Management demonstrates political and managerial strength through generally good political consensus in passing budgets and a sufficient degree of transparency and disclosure in its financial statements.” S&P goes on to add that: “The city reports that property assessment values likely fell in the most recent assessment cycle, which could put pressure on revenues. However, St. John's has historically had high levels of modifiable, or own-source, revenues and we expect this will allow the city to raise rates and fees as necessary to meet its revenue goals.”

The City has begun the process of public engagement on a new strategic plan and budget for 2019-2021. For more details on how residents can engage with the City in developing this important three-year plan, please visit engagestjohns.ca.

The Standard and Poor’s report is available online.

Media Contact:
Kelly Maguire
Media Relations
City of St. John's
709-576-8491
kmaguire@stjohns.ca